Through flexible borrowing, investors are able to achieve more through the option of margin financing, Employee Share Option Scheme (“ESOS”) financing and Initial Public Offering (“IPO”) financing.
- Borrowed money that is used to purchase securities ("buying on margin").
- The amount of equity contributed by a client as a percentage of the current market value of the securities held in a margin account.
- In a general business context, the difference between a product's (or service's) selling price and the cost of production.
- The portion of the interest rate on an adjustable-rate mortgage that is over and above the adjustment-index rate. This portion is retained as profit by the lender.
- Borrowed money that is used to purchase securities offered to an employee under an employee share option scheme extended by a company.
- Borrowed money that is used to purchase securities during the initial public offering exercise.